By: Nick Evans – February 13, 2025
Two Republican state senators in Ohio have reintroduced a measure eliminating sales tax for guns and ammunition while dangling tax incentives to lure firearm manufacturers to the state. The sponsors contend Ohio is losing out on gun sales as buyers travel to neighboring tax-free states, and that Ohio has an opportunity to add new jobs if it takes steps to attract businesses.
State Sen. Tim Schaffer, R-Lancaster, who sponsored a similar bill last session has filed the proposal again. He’s joined by state Sen. Al Cutrona, R-Canfield, who moved from the House to the Senate following last year’s election and previously backed similar proposals in the lower chamber.
Everybody else is doing it…
In committee, Schaffer argued Ohio should forgo taxes on firearms and ammunition because gun buyers are likely to cross state lines for cheaper purchases.
“Senate Bill 59 will make the related businesses in our state more competitive with those in neighboring states,” Schaffer argued. “In 2021, similar language was adopted into law in the state of West Virginia and that highlights the necessity of this legislation to ensure Ohioans support Ohio businesses.”
Although West Virginia has adopted a sales tax exemption for gun and ammunition purchases, none of the other states neighboring Ohio have taken similar steps. A handful of other states, Alaska, Delaware, Montana, New Hampshire and Oregon, don’t charge sales tax on guns either, but that’s because they have no state sales tax at all.
The impact in Ohio could be significant. According to a study conducted by home security website SafeHome.org utilizing data from the National Instant Background Check System, Ohioans purchased nearly 600,000 firearms in 2023. That works out to 668 weapons per 10,000 residents over 21 years of age.
Schaffer cited Legislative Service Commission research that pegged the price tag for the exemption at $22.5 million to almost $38 million. “Compared to the 2024 total (general revenue fund) of $13.7 billion,” he said.
Growing business
While Schaffer emphasized how their measure would benefit consumers, Cutrona focused on businesses.
“Jobs. This is what this bill does,” Cutrona argued. “It creates jobs here in the state of Ohio.”
He explained they’ll encourage existing businesses to expand and attract new businesses to the state with a refundable tax credit. Under the proposal, companies could apply for credits tied to their increase in payroll so long as they make a capital investment in Ohio of at least $2 million.
Cutrona described a recent visit to a trade show for firearm manufacturers.
“When I spoke to those CEOs, those owners, you know what they told me?” Cutrona recalled. “They’re looking for states that want their business. They’re looking for states that they can appropriately be able to manufacture and produce their product.”
“Well guess what?” he added, “Ohio is open for business.”
Reception
Sen. Bill DeMora, D-Columbus, voiced skepticism for their proposal.
“How many people have been prevented from buying ammunition or a gun because of our sales tax?” he pressed the sponsors.
Schaffer side-stepped DeMora’s question arguing, “it’s not so much about how many people will be prevented from buying it, my concern is they’ll go across the border.”
He argued hunting and target shooting enthusiasts go through purchase enough that “for them it makes a big difference.”
“And just to go five, ten, fifteen miles across the border to West Virginia to buy it tax free is a big difference,” he said, “and then our retailers lose out, and that hurts our jobs.”
Cutrona chimed in that the state line is only about a 40-minute drive from his home in the Youngstown area.
“You’re going to start to see a numerous amount of business(es) leave areas like mine to go to states like West Virginia,” he argued.
